Skip to main content

tv   Street Smart  Bloomberg  December 6, 2013 3:00pm-5:01pm EST

3:00 pm
in those types of funds to see how they perform versus the world. fixed income we'll be on the markets once again in 30 minutes' time. next. is "street smart" is next. >> the schizophrenic market is back. a solid jobs report triggers a market surge after five days of decline. we'll explain when good means good and when good means bad. e-commerce the pioneer, is now going brick-and-mortar. >> we used to think in terms of either you're chopping digitally or you're shopping in a store. mobile technology is enabling is that line to blur. c.e.o.e talking to the about the company's big investment in high-tech .torefronts then, for the final day of bubble week, we're looking at biggest bubblehe of all, bitcoin a digital
3:01 pm
millionaire named bitcoin jesus explains why you believer.a >> market near highs of the day right now, the five-day slide officially come to an end as markets gain on jobs. welcome, everyone, to the most important hour of the session. minutes to go until the closing bell. markets forng the today and for monday. 203,000 jobs being added to the economy. exciting to see. great news. >> 7% unemployment. >> yes, americans back to work. forcee labor participation went up meaning more people are being counted. that's been a big concern, that just falling off. >> all reason to cheer. and market likes it. >> market loves it. they mightd think get nervous because it might mean tapered sooner rather than december.n as soon as >> right. >> nonetheless, higher. >> good news is good news. let's go to the big picture. will show you the three charts you've got to see. the dow industrial up 183
3:02 pm
points. up 1.2%. we were up about 193 points a few minutes ago. slightly off the highs but still vague very good day. thewe're making up for ground we lost in the preceding five days. will this is curious. spike up early this morning up to 2.93 and back we you're wondering whether the taper is priced in. >> could be. >> yup. at about -- >> good is good. >> means good is good. i like it. story., by the way, same it's call it flat. it's only up 29 cents. oil is up 6% in one week. begin to think maybe this thing is priced in. good news. news.d let's get to the big three. the stocks we're watching into the close. an eye on them. >> intel, a gain of about 2.6% after citigroup upgraded the buy and said the p.c. market is actually stabilizing. joining some other analysts who been making similar comments recently. so that helping that stock.
3:03 pm
higher, said its comparable sales last month rose estimatedetter than pharmacy sales in particular doing well at the nationwide chain. finally, j.c. penney down again today. remember it was up earlier in it said it had its second consecutive comparable store sales gain in the month of november. however, today it disclosed the itsc. is looking into finances. manufacture its investors complained following its stock months ago.ouple of so those shares taking a hit. >> thanks. story.ove on to our big a new sign from schizophrenic markets. we received a ton of economic week.his think about it. on monday we learned that u.s. manufacturing hit a two-year high. news, but markets were not impressed. tuesday, big gains for automakers. no gains for stocks. now, wednesday, new home sales soared. its decline,nues even g.d.p. growth didn't sway
3:04 pm
indices. then enter today, the jobs report. the lowest rate in five years. 203,000 jobs added. a market that finally seems to be getting its mo-jo back selloff.ive-day so how do you know when good is good, like today, or when good is bad? want to bring in our panel. forcelli, carl closer, stevenur wining, citibank chief global strategist. great to see all of you here. it that the market is interpreting this jobs data as good news after having seen good news points throughout the week? icing onk this was the the cake that maybe there was no going throughre these string of upward surprises. finally we get to the employment and that shows that we are seeing the improvement in the economy that's necessary.
3:05 pm
bad to goodood is is good because if we're looking at an economy shifting up to a of growth with a faster rate of hiring, that means a lot more for households. and households drive the u.s. economy. they're 70% of g.d.p. isstronger employment news good. >> do you think that this is going to stick? theory?d is good >> good is good whether it sticks in market is to be seen. we've seen a pickup between stock and bond correlation. earlier in the year we were moving up on stronger trend assumptions. the treasury market was selling off. and stocks could sail through it. recently we have seen a correlation pick up where markets seem to be being fueled expectations and the hope for easy money. so i think you have to look at the week as a whole. up stock market did not go much this week. we had great news all through the week on the macro economic front. not as convincing as other data points like the third quarter g.d.p. >> 3.6 growth isn't convincing? that sounds good. >> the piece that was inventory
3:06 pm
contribution. very happy with the way the economy is proceeding. i expect it to accelerate from 2% closer to 3% in the coming year. that's negative for treasuries. stocks.itive for but we've got to shake off this love of easy money in the stock market. yet.'t think we did that >> let's look ahead to the next fed meeting which is decembe december 18. tom, do think there's a chance we could see a taper? that you cane best say about this payroll report in particular that this is a step toward tapering but it will not cusher tapering in. usher tapering in. the fed is looking for a string better economic reports. and we're just not there. i think that chart that you showed at the top suggests that the data has largely been uneven. and for those people thinking january, i'll just throw an forresting idea out there you. the problem with january is the january meetings on the 29. tapers on 29, guess what happened on the 30th? q4g.d.p. and this number, there's going to be payback for that 3.6%
3:07 pm
outcome. that economic activity in q4 could hit 1%. highct, there's a likelihood that it's even sub 1%. so what could happen, literally canne 12-hour period you get the fed ushering in tamering in in january and then you'll want -- have to waitdon't for january. december 18 is approaching. what do you think? i -- i thought i addressed that the problem with lidmber is that youly the have this one report. how materially different is this thereport relative to string of 10 other -- >> 190,000 jobs per more for the last 12 months. >> if we look at the average over -- >> all right! hang on. hang lon on! fired up. >> he is. >> tom is like the labor market. it's going and going. everyone.ugh for >> carl, why might we see a taper in december? >> we've seen now four months rolls are averaging about 200,000.
3:08 pm
the unemployment rate now is at earlier thisre year chairman bernanke said we want to be done with tapering by the time we get to 7%. we haven't even started yet. so i think these labor gains are here to stay. i'm not in the camp of the folks are saying that we're going to have a big downshift in g.d.p. in q4. levels are still very lien relative to sales. >> i wonder if it the fed is as you. as >> wow. >> that's the question. >> we would see the i.f.m. rolling over, business sentiment pulling back, lots of production pulling back. >> so a lot of positive signs. but there's so many unknowns. steven says that is the question, whether or not the fed is brave enough to do this tapering. >> the fed had an open door in september. pretty clear that there were concerns about government and things like that. effect wasthat the ais imetric, a sharp -- metric. i think we could have a lower headline in print. but the underlying story has been strengthening. and that over the past year we've had 190,000 jobs per month
3:09 pm
created. that's not the equal of the declines in 2008-2009. but this has been a strengthening trend. and they should have tapered when they had the chance in september. view.ur whether they will or not in december, it's a matter of time if we stay on this course. sounds vibessing. -- convincing. >> look, let's make sure we're on this. i'm telling you what i think the fed will do not what i think they should do. there's a massive distinction. tapering should surrendered a long time ago. the problem for the fed is, how do you ease the market into tapering? and i think what you're getting from the market is that they're withng more comfortable that. so that will obviously embolden the fed to think, yeah, we can in.r this but i think with regard to the december meeting, again, and anytime even over the next thele of months, i think real problem is the economic data have not materially improved. and to the fed's point, again, what the fed is saying in the , they're still lamenting the fact that job
3:10 pm
growth hasn't accelerated. again, we can have an academic discussion about 2/12 -- isnot this better than averaged. i would argue it's basically the same number. but this is the same number the lamenting that has not improved. that's why i think we're getting there. but i think more specifically, i is getting there with the could the for the level -- comfort level but acember is too soon to have real conversation about this. >> i think there's a few key differences. going into the september meeting some sense that the labor market was actually slowing. revised since been away. also, the markets weren't separating, tapering, and the increasesthe race which now the fed has more successfully drawn the division between the two. themost importantly, minutes of that september meeting show that the fed was concerned about a looming and possibleutdown debt ceiling standoff. it's very likely that next year we're going to have now a two-year budget agreement pass through congress, not taking any steps. >> the world has changed. >> a lot of that uncertainty is
3:11 pm
removed and the labor market looks better. were close in september, as they have told us it was a close call, then december really possibility. >> all right, thanks so much. unfortunately out of time. carl, great to sigh guys. we're going to have more on today's jobs report later in the ofr with the former chairman council on economic advisors and republican congressman garrett. is gettingmum wage maximum exposure. adam will tell you why in insight and action.
3:12 pm
3:13 pm
3:14 pm
>> minimum wage getting maximum
3:15 pm
exposure. action.""insight & president obama on minimum wage and workers in fast food rants, quote, work their tales off and they're still barely living line.the poverty what's he talking about? 35 fact that 35 states, states in the u.s., 35 out of 50 states, this is a real problem, are actually paying more in benefits than you can make if 40-hour workweek at minimum wage. think of that. let me give you an example. florida. this. look at florida weekly jobless benefits, $521. all right? that's an hourly rate of $13.05 the minimum wage o of $7.79. it's incredible to think about that. you're actually better off, at least in the state of florida, not working and collecting your jobless benefits than working a wage that seems crazy. right? as though our priorities are completely backwards. it ought to be the other way
3:16 pm
around. that is why we've had protests yesterday in 100 cities, fast to get more trying money. so that creates a real issue as look at the restaurant stocks. right? because they may have to start paying more money, perhaps. did.s what we we tried to figure out who are the most profitable restaurants and who are the least and who at so take a look. panera. o ual sales for employee of $115,000. burger king, $106,000. mcdonald's, $64,000, wendy's wendy's, $57,000. mcdonald's, half asw and burger king. suddenly minimum wage going up, these are the guys who are going to get hit the hardest. case of wind yes -- wendy's, watch this. stock up 83% this year. say, wait. it's up 83%. it's only growing earnings at it's tradings and at 30 times. why would i necessarily want to long wendy's when there's
3:17 pm
this pending, perhaps, minimum wage issue? that's the problem. priorities completely backwards in this country. minimum wage, you're not making enough. workingetter off not and collecting on insurance. it's hard to fathom. >> unbelievable. really interesting. thank you for that. coming up next, we're going to ofk at the life and legacy nelson mandela. here's u2's bono. operation on his tear duct because when he worked on robin island in the salt the salt burned out his tear ducts. this figure that will be remembered not just in in africaca, not just everywhere na, asia, everywhere, the man who could to tearsany people himself could not cry.
3:18 pm
3:19 pm
3:20 pm
3:21 pm
>> national leaders are mourning the death of south african president nelson mandela. beloved nelson mandela, of ournding president democratic nation, has departed. the mostlost one of influential, courageous and good human beings that any of us will share time .ith on this earth he no longer belongs to us. he belongs to the ages. lightsof the brightest of our world has gone out. alson mandela was not just hero of our time but a hero of time. >> nelson mandela was a giant and humane
3:22 pm
inspiration. >> mandela leaves his country a important principles to govern by. but how will south africa, a nation still on unsettled his legacy and move it forward? we want to bring in our panel. nadine worked with president on antiapartheid chain issues. jake bright with a special focus african business. and the chief executive at the foundation also jin joins us on the phone from south africa. you did work alongside president mandela. you were a member of the together team that put his book. and you've also been actively fighting for human rights in your country. how do think president mandela's legacy will help shape south africa's future? >> good evening. played hisela has
3:23 pm
part. viewers. remind the nelson mandela, three terms. famous speechhe "don't call me, i'll call you." the third time being when he then said "in your hands now to difference." this was in 2008. significante three moments where nelson mandela takels it's time to leadership, take ownership of this legacy. to it's now in our hands make a difference. that we cannot wait and rely heavily on his generation. >> he was able to do so much. countryped to put his on the path to economic success.
3:24 pm
riantly, butt nonetheless -- recently, but nonetheless you think of the opportunity in south africa now versus the apartheid days, two places.ferent >> yes. >> yeah. in addition to all of the amazing things that mandela did, it's often overlooked that he choices.ber of and one that he made was to put south africa on a free market track to lead it to be the of africa that it is today. it has a lot of things left of africanacy that other countries are looking for. it got way out ahead of that in terms of being the only investment grade country on the continent. it has the largest market capitalization of any stock africa, one of the biggest entry points for foreign direct investment, sells the has theds in the world, most traded currency. convention a lot of at the time, in 1994, mandela chose to put the country on that track. >> and it's amazing to think that under apartheid there were
3:25 pm
likeny companies coca-cola, for example, that simply couldn't do business in south africa because people inn't want to do business south africa. nadine, try to quantify for us and nowge between then owesow much south africa nelson mandela because of that. >> it's just totally extraordinary. first became -- my husband and i first became involved in the antiapartheid movement as a extension of having been involved in the american civil 1960's.ovement in the so when i first visited south africa, i thought i would an extension of the segregated south -- >> and by the way, this is a with nelsonou mandela on one of those first trips. >> not on one of the first trips. that's very shortly after he was released from prison at his home. withs my husband in 1986 theer tonbo who was heading a.n.c. when nelson was in
3:26 pm
prison. but when you went to south was likeen, it futilism. it was hard to explain to americans and others throughout how utterly devastated beingsority of the human who lived in south africa were. back in when i went 1998, which was about four years the first re-election, a friend of mine invited me to out on to the beach. and i had never stepped on the beach before because it had "whites only" and i didn't feel capable of stepping -- and walking on to beach, it was like shields were lifted from my eyes because to see the been able beauty of capetown before. families, muslim families, asian families, white families running on the beach. to nelson mandela. >> absolutely. >> pretty incredible. liberations. >> thank you so much to our
3:27 pm
entire panel. bright, selloake hatang. we'll be back after this break.
3:28 pm
3:29 pm
3:30 pm
>> all this week we've been talking about bubbles in housing, stocks, i.p.o.s. but there's one bubble that's, perhaps, bigger than the rest. bitcoin, the value of the currency has climbed 80-fold this year alone, trading under $900. it's gotten so big that it has a jesus. said that right. a jesus. roger, c.e.o. of memory dealers, a.k.a. bitcoin jesus, joins us right now have i i can't skype. the show.come to we want to know, how did you so-called messiah of crypto currency? >> i found out about bitcoin almost three years ago. when i discovered it, i realized
3:31 pm
the most important invention in the entire history of the world since the internet. amazingit's such an world-changing invention, it's going to make everybody's life on the planet better. i wanted to tell everybody about it. so for the last three years every chance i've got, every meet anyone, anywhere, i tell them about bitcoin. at one point i was e advantage liesing bitcoin to about two dozen high school kids. they were so excited about it. watching then whole thing commented it's like you're a bitcoin jesus and you have your disciples around you. that's how to started. >> is it tough watching your net worth go up and down quite significantly? day by day. bitcoin down about 20% today, but, you know, it's gotten as of 1,000.wards what's that like? the volatility. >> to be honest, the reason i'm bitcoin isn't to day trade or speculator watch that sort of thing. i thinklved because it's going to make the lives of every single person on the planet better.
3:32 pm
what that means. it's hard for me to necessarily one.rt you on that >> ok. well, for example, governments all over the world love to print money. you or i do that, we get sent to jail for counterfeiting. when governments do that, they all it fancy things like quality take thive easing. and when governments print that money, it makes the dollars, that normal people have worth less. so basically it's stealing people.avings, from the and with the currency like bitcoin, hard cap of 21 million, make their own't bitcoins out of thin air. there's no way that governments can just in flat the currency they do with the current currency. so if the world starts using bitcoins, everybody will be off.r i'm in argentina in the moment for a bitcoin conference. a's a great example of country that has ridiculous currency controls. i sent a dollar worth of bitcoin the producer of your show about a half an hour ago with any other payment system that would be impossible without getting government permission. with bitcoin you can send and
3:33 pm
theive money anywhere on planet and there's nothing anyone can do to stop or control it. that's a really exciting 1-2-3 inning. it's never existed before in the history of the world. >> but it's not that easy to buy bitcoin. one of our friends here is trying to do exactly that. miller is trying to bike, as we speak -- buy, as we speak, some bitcoin. several days. it's a lengthy process. walk us through how you actually do it. if you're someone at home right now watching this interview and you want to invest in bitcoin, it?do go about >> sure. there's two really easy ways for people in the united states. one is a website called you just put in your zip code. it will show you a list of all of people that live near you that are willing to meet up at your local starbucks and bitcoins. another great website is traditionalk your bank account with your bitcoin account and it works like if you your bank account with paypal. once you have the bitcoins, you
3:34 pm
them withnd receive anyone anywhere until the world. and the best mobile wallet if i can plug that also is -- coming up on a million users by the end of the year. they have apps for iphone, android. send and receive money anywhere in the world basically for free. there's no way anybody can controlour account or it. >> here's the thing. the appeal of bitcoin for a long time was the fact that it enabled anonymous transfers. it's starting to go mainstream. if you're linking it to your own account, now there becomes an electronic chain that seems a little easier to track. what do make of that? >> so your question is what's the easiest way to buy bitcoins? you're buying them with a traditional bank account, that's trackable. bitcoins,ou have the what you do with them is your business. if you use all free tools websites like, they offer tools to allow you to maintain your privacy. >> let me ask you about china.
3:35 pm
the chinese government has come out very critical of bitcoin. what do make of that? bitcoin'shis hurt future? >> i don't think it was necessarily very critical. at the said that people are still allowed to use bitcoin. it just said the banks aren't directly allowed to. run, iting, in the long shows the governments understand that they are losing their grip on the supply of money in the control of money. and bitcoin will take that away from every government on the entire planet. forthat's a wonderful thing every individual out there that wants to buy and sell things. anit feels almost like anarchist movement. am i right to say that? the idea that you're taking control from the government and putting it more in the hands of people when it comes to the currency. >> personally i like to call idea that- it's the all human interactions should be on a voluntary basis. if you think of it that's the people live their lives. everybody's interaction with consensuallse is voluntary. when you buy from starbucks,
3:36 pm
they're not forcing me. they're asking me. but with governments, they're telling me you must do this or you can't do that or we're going to hurt you. no, i don't support anything do. a lot of the early bitcoiners have that view. i understand note everybody does. the other one of great appeals of bitcoiners. you don't have to use it. if you want to, feel free. right. we'll leave it there. have fun at the conference in argentina. usnk you so much for joining today. >> thank you. >> coming up, ebay not afraid of the -- why the c.e.o. says it's fantasy.k of there it is.
3:37 pm
3:38 pm
3:39 pm
3:40 pm
>> the e-commerce giant still needs brick-and-mortar partners space.eed in the bloomberg's john ehrlichman went inside the company's payment playground to find out how fake stores are fueling ebay's growth. >> this looks like a shopping mall. >> this is where the honey mustard is. >> it's not a store at all. it's a fake storefront staffed full-time by actors, built by demonstrate the future of shopping. >> this is our payment technology playground. an opportunity to showcase what we've already put into the market. >> hill ferguson's job is to figure out how to push paypal onlinee world of shopping into brick-and-mortar retail. >> if you look at what were able retailers to do for online shoppers, personalizing websites, giving them custom storefront, none of
3:41 pm
that exists in the offline world today. paypal, that means everything from getting businesses replacing cash with ipads running paypal software to make shoppers swapping wallets for phones. ebay is partnering with sony, tomsa rolling out touchscreen walls like this one in san francisco. >> this 10-by-10-foot piece of interactive glass. storefrontn average into an interactive shoppable store. you walk up. you touch the glass, select your product. push that cart to your mobile phone. your mobile device. >> last quarter alone paypal nearly $6,000 every second, bringing in revenue of of $1.6 billion, 42% of ebay's quarter.l for the >> we moved money from consumers to merchants. in doing so, we take a small transaction fee. >> the mobile payments is a crowded field with startups like
3:42 pm
square and tech giants like google competing for the action. >> we have over 140 million active consumers who use the paypal wallet to shop. a really meaningful advantage that we bring. we actually have a relationship goesthat consumer that beyond just 16 numbers. not the only one who's been inside ebay recently. corey johnson is there right now he just interviewed the c.e.o. i'm curious to know, what did he tell you? >> yeah, so really interesting stuff here. they really do take great pains to take their customers through here to convince merchants who market, either a food sporting goods store, that this is the future payment. but when people think about the the big newsail, of the last week was the really amazing notion of drones ebay'sing packages from archrival amazon. so very interesting what john to say about mocking
3:43 pm
this whole idea of drones. take a listen. really focusing on long-term fantasies. we're focusing on things that will change consumers' experience. >> so clearly taking a shot at p.r. stunt, the very successful p.r. stunt from to thinkf you want sort of big picture metaphor for what these businesses are, think as an aspiring online wal-mart and ebay as aspiring small businesses enables others. ebay isn't what it was 10 years ago. it's not an auction site only anymore. only about 1/3 of their isiness, probably less now, auctions. more like 70%, 80% of the sales are fixed price. toss in their paypal business which has been growing theatically, although growth has been slowing down. i sat down with david marcus, the guy in charge of the paypal business. he has 18,000 people working on paypal. and while the growth is slowing, pressedrprised when i
3:44 pm
him about that slowing growth. he said it was going to turn around. >> we think that we still have a lot of growth ahead. growing fast. we're going to start seeing the benefits of all of our efforts omni channel. not in 14 but 15, 16. that we canood .eaccelerate the revenues >> so rebeinaccelerating growthn an executive says reaccelerate, big promise. that says they think mobile and displays like this will do it paypal. >> you talked about reaccelerating growth. as i look at the earnings over it'sast several years, been a consistent 16%, 17%, 18% grower. looking at the estimates in computer, itn the looks like that's going to continue. ?s it really a reacceleration an acceleration or just a continuation of a very strong trend? >> he's saying very clearly reacceleration. so within the paypal business
3:45 pm
seen year over year 23%,h go from about 25 -- 25%, 27% down to 20% last quarter and the quarter before that. reacceleration to hit their targets. that's really positive news. bigs the fastest-growing business within ebay. there could become a time when the paypal business is even the merchandise business, which is also growing quite healthily. with thatt there have yellow kayak behind you? there's sometually guitars over there that are looking good to me. there's a sweet guitar. i've never -- i'm not a -- who can't use another guitar? >> you take the guitar. i'll take the kayak. monday.e you >> u8. in real life. >> i know. >> i'll there be in new york. can't wait. >> i know. here monday right here inned studio. -- in the studio. a greater says 2013 was year for markets but it's not going to get better from here. he has' clarity to prove it --
3:46 pm
prove it. that's next.
3:47 pm
3:48 pm
3:49 pm
>> time to show you i smart that will make you smarter. it's been a great year. that. know you say this is as good as it's going to get and you got a chart to prove it. chart, it's of that risk-adjusted return. so it shows the total return for s&p 500, less a t-bill return. but volatility adjusted. is what's -- what guys on wall street call the sharp ratio. words, the return that you're going to get based upon the amount of risk you're taking. >> in this case it's backward looking. it's the last 12 months and you
3:50 pm
can see we've had risk-adjusted returns as strong as we've seen since 1997. >> right. the stock market this year, any entry year decline, limited to 6%. a typicalunderstand average year has an interyear correction closer to 13%. correctionshey call 10% or more. you start to hear about these bullish markets, the market down 3%, 4% in a correction. people get spoiled by the .xtremely low volatility we're overweight u.s. equities, this great year where we've had both easy money and strong growth and an in economic growth and more properly said, we think that the return will be closer than 30%. roughly speaking for the coming year. and we started to -- >> which is more in line with the long-term average. right? >> better than long-term average. >> typically returned, what, 8%, 9%? very,ould say when we had very depressed markets at the
3:51 pm
end of the great depression you could go as much as 10% on a basis.ed looking forward it's probably closer to a 7% really long-term return from here. you're saying invested. a sharp ratio. brack inde the camera again. -- back in again. this is the sharp ratio. returne amount of -- the that you're getting based upon the risk you're taking. that's why it's a ratio. and when it gets up this high, it tends to peak out. and can we make the statement, get that'st when we peaks, as we have seen at other times in the past, that you then get returns, again, historically that just aren't as good? last forever.n't >> you could sustain it for a while. i'm as bullish on the american been in 15i've years. but we had a really, really strong period for earnings growth. think that the economy will strengthen, that corporate profits will be moderate. here the valuation gains that you're likely to get are going to be a little bit less profound.
3:52 pm
i think in particular because we're not going to get the extra from the of easy money fed. little by little that will change. so we've taken our overweight it into slightly moved some of the markets where we have seen less profound strong returns. .> understood steven whiting. you on theood having show. >> thank you. >> indeed. get the top 10 stocks you need to know about today. the close is next. in the next hour we're talking former chairman of economic advisors. recentama care's most report card with new jersey congressman scott garrett.
3:53 pm
3:54 pm
3:55 pm
3:56 pm
>> if you missed everything that happened during today's session, do not worry. going to be getting you caught up on the stocks you need to know about. number 10 gap, falling more than as the stock downgraded. believes there's a chance sales weak consumer spending trends and the heavy discounting across the sector as holidays kick into gear. soars -- iovember should say, november sales atmosphere stores open more than analystsse more than estimates at rite aid. operator says same-store steals surpassing the 2.1%
3:57 pm
memian forecast. specific sunht, .ear, shares jump this comes after pac sun said profits surged in this the third helped by a one-time gain. b. riley boosting their shares. everyone listens much. >> like e.f. hutton. .> they're the new e.f. hutton >> and the beauty product retailer ulta reporting below estimates. softer retail trends may continue into the holiday shopping season. amonge we're hearing retailers. >> sure is. news it will on spinoff the lands' end to shareholders. it's the latest move by the retailer trying to turn around its results as they face wider losses. investors not
3:58 pm
shares are down 20% just this week. this has been absolutely brutal. >> lands' end, though, well, they make great tote bags but profitability not too high. $50 million in profits on on $1.1 billion in sales. >> i have lands' end luggage. do you have? tote. luggage, a >> everyone buys those for the kids. number five, j.c. penney, down 9%, extending a three-day slide after disclosing that regulators asked for information finances. a letter from the s.e.c. on october 7 requested info liquidity, cash position, as well as a stock sale in september that the to fund an using attempted turnaround. say that it doesn't ever get boring talking about j.c. penney. it?n't that was sarcastic. it does. >> no, it does. >> i was being sarcastic. not.m it's a disaster. it's sad. it's an american icon that has way.its
3:59 pm
it's cost people jobs. it's cost investors money i think it's an incredibly sad story. >> another american icon that lost its >> here's -- sears and row buck, that is iconic. early --ck to the >> i still go there to buy craftsman tools. you? >> yeah. they've broken off a special section of sears as like the tool jack. >> you're like the only one there.g no wonder they're struggling. >> a lot of guys buy tools there still. >> american eagle, shares down as the company reports third 68% on arofit tumbling 6% revenue drop. and american eagle lowering its profit outlook for the rest of the year as it resorts to heavy discounting to pull in shoppers. pac sun. he y likes pac sun. >> it's ironic all the names are losers on a day when the market up is. but another one, big lots, 13% as theing closeout retailer provides a lower-than-expected guidance. lots also announcing
4:00 pm
plans -- there's the closing bell. exiting the canadian market operates 73 stores. .> we have to make up ground >> we're coming up on our number day.tock of the intel up more than 2% for the gain in the stability and corporate demand the chipmaker. and here we are closing out the session here pretty significant near the highs of the session. it looks like we're ending up almost 200 points on the dow. points, gain of better than 1% on the s&p. 29 of the 30 dow components all trading higher today. biggest rally we've seen for the market in a month. we should point out that all of that ground that we lost earlier in the week we made it all up today, folks. optimism surrounding that jobs report. better than 200,000 jobs being added to this economy in the month. we want to get some additional context on the market.
4:01 pm
every sector higher. >> we've made up almost all of the losses from the prior five sessions. remember i cautioned you. startworry, we got a weak to december. >> you did. i was getting concerned. day. day it was a down >> just a few days. as you say, all of the sectors are up. is up the most. you would think that on a day like this, cyclicals would be doing the best. tend to see when you have better-than-estimated economic data. thisially a report of importance. but it's consumer staples doing the best. but industrials, materials, into that falling cyclical category. and those groups also did well .oday >> good not to be a retailer today perhaps. bitcoin owner. >> exactly. you're going to buy yours at a good price. week?lug for next >> sure. >> i am trying to figure out how to buy a bitcoin. jesus --t cans down bitcoin jesus told you it was easy. >> he said it's not that hard.
4:02 pm
spending a whole 24-hour period try toying it out. starting on monday, i will be doing a segment, we all will, called the 12 days of bitcoin, a play on the 12 days of christmas. each day i will do something different. first day i'll buy one, if i can figure it out. >> could you maybe live off your bitcoin for 12 days? >> i this i i could. $850. i could live on $850. >> not how much money -- true.t's could i ever buy anything with it. >> could you buy enough food for those days? a >> i am curious. >> thank you. >> we're watching for it. mean tile, these are the stories we're tracking ahead of tomorrow -- not tomorrow. we have a weekend coming up. monday's open. >> two days off. we're watching some football and having fun. here you go. new c.e.o. cable's says he's ready to sell if the price is right. bloomberg hisd background in mergers has given him the experience to know a good deal when he sees one. ok. see.
4:03 pm
>> looks like val kilmer. >> he does. he's taken the reigns at time warner. rivals have considered making bids, according to people familiar with the matter. company also named a new head of mergers and acquisitions today amid all of this rampant -- >> a new head -- >> yeah. >> a new c.e.o., a new head of m and an a. >> a lot of work if they're potentially about to be acquired? why bring in a new guy? >> because he's a quote/unquote expert.ointed if you're going to bring -- looking to do a deal, bring in, in theory -- internal. he's moving up. maybe he was involved at some stage of discussions already. >> they said -- bloomberg reported yesterday that they andd be looking between 150 160 a share in terms of where they would be willing to sell company.
4:04 pm
>> closed at $131 today. >> so the market obviously -- we one of thet out commissioners told "the wall street journal" that he thinks the deal, if there were no a veryions, would be difficult to do. so there would clearly have to negotiating. maybe that's where the new c.e.o. comes in. move to new york city to get away from time warner. >> did you? >> it was so bad. >> that's why you moved -- >> back to something we were discussing earlier. my parents just purchased a at sears, which, as we talked about. >> good call. >> planning to spin off its unit concluding a week that saw shares down by about 20%. chairman, c.e.o. and largest shareholder has been selling off sears assets and is getting rid has been called the jewel in sears' crown, a security filing today shows lands' end doesn't make much just $50 million of net income on sales of almos almost $1.6 billion. nothing.s >> little margin. >> it will keep 48% of the lands' end stock.
4:05 pm
rest goes to the rest of the sears shareholders. it's hardly a jewel in the crown. mentioned the number. i mentioned the number. and this is really a surprise to people. supposedands' end was to be a strong holding. it's a strong brand. sort of a well-known american brand. here it is. the sales actually haven't fallen that much over the past the but thes you profit and ebida have been cut in half. and in talking to analysts, they partly on discounting, which is the problem -- >> a $1.6 billion in sales and only $50 million in profit? horribly wrong as a manager. really bad management. when it's your own label. if it's your own label, you some --ave >> maybe they're more expensive. >> apparently they are. >> luggage and a tote what is a tote? >> a little tote bag. .> like you take on a boat >> like a duffle bag? >> no. a duffle bag has the zipper.
4:06 pm
open top.have the you know. preppy guys. >> , oh, a beach bag. walkingy guys are around -- yeah, beach bag. searsds' end is going and will concentrate on its core business which is also doing horribly. >> washer and dryer your parents bought. >> i thin -- i don't think thats enough. >> pollution in shanghai. that's what we're talking about next. it's reaching high levels. dangerously high levels. a heavy smog. look at that. shrouding. to order vehicles off the road. factories had to cut production and delayed or canceled flights. look at that. the situation is continuing to worse. and now the government is issuing a severe health warning as the city's population index spiked to more than 20 times the healthy level of. joe this morning tweeted a sign that i guess the government has issued with a crying baby on it. like don't take your kids out in
4:07 pm
there. .t is dangerous i wouldn't want to live there. i feel horrible for everyone who has to live there. but i have seen study after study since i was like in my early teens about how the pollution problem was going to dobad if they didn't something about it and they didn't do something about it. >> this is a problem for them as try to grow their economy. i was talking to a c.e.o. who otheremain nameless the day who has a shoe company who there. he won't go over >> an online shoe sales company? hisooking to source factories elsewhere because of pollution. >> a lot of bankers have said they're leaving. right? that's why they call him dr. do. >> it's not like that in every city. >> having traveled throughout china, i've been to seven large cities in china. say in defense of frankly the chinese, the pollution is not bad across the
4:08 pm
entire country. again, having been there, i have seen some very bad solution. also seen some very clear and very beautiful cities. .t's not all bad >> i have to check it out. >> 23 and me. genetic testing firm has announced it will stop providing its main service. amid an f.d.a. regulatory review. if you remember last month the the -- demanded the company stop marketing its d.n.a. testing device. issues, 23 and me was selling a medical device intended to diagnose diseases the f.d.a.roval from that's a big no-no, even if you are married to one of the google. of not helping the company's case? well, those two divorced. and a few days ago a customer filed a $5 million class-action lawsuit against the company. that it wills still continue to provide customers with ancestry datamation and raw genetic without interpretation which is still pretty cool.
4:09 pm
ishink this company fascinating. i wish i could get my hands on a everything tested. >> can't you? >> they're not allowed -- someone.d >> the raw? >> they'll still give me the raw data. but i want to know the disease stuff, too. personally, i don't care if the food and drug administration approves. freesupposed to be a country. i know it's not. >> maybe you can get it in canada. .> maybe >> you go to them, you get the raw data, and then you take it a jeanetteind sift -- geneticist to interpret. more money but. >> maybe they'll figure out a way. >> how long for the f.d.a. to approve this so people can do it? >> isn't it a giant government regulatory body that takes years anything?to approve >> it makes it super costly and retards growth and innovation? what the f.d.a. does? >> and in theory, safe. there's another issue. this data gets out there and it turns out people are discriminated against because of this information?
4:10 pm
information out there -- >> it should be private. we have these massive hipaa agreements. right? laws. that also retard everything you try to do. our phone calls were private and it turns out they weren't either. being tune of 5 billion tracked every day. >> did you think the n.s.a. wasn't tapping your phone? tapping myey're genetic data. >> i've known ever since the and gene hackman movie that the n.s.a. was listening to everything. state."f the >> you're ok with it? >> you just know it's happening. that's what the n.s.a. is supposed to do, covert separations that we don't expect but know are happening. that's the n.s.a. take on get your first monday. here's a look at what's next on ."treet smart >> grading the jobs report. the former chairman of economic advisors, ed lazear and new jersey congressman scott garrett deliver washington's review of report.oyment
4:11 pm
4:12 pm
4:13 pm
4:14 pm
>> america is getting back to work. today's job report shows u.s. unemployment is down to a impressiveow, an milestone for sure. but our next guest says we are not out of the woods yet. seven-year target on our recovery. and he might know. chairman ofmer economic advisors. we want to welcome ed lazier back to "street smart." to see you. >> good to see you. thanks for having me. >> seven years it's going to
4:15 pm
to reallyat long return to real prosperity? to realo return prosperity but to return to where we were prerecession. the problem is this. when you see jobs being created, like 200,000 jobs this month, , and,was pretty good again, we've had that actually for the last three or four that's the good news. it's not an anomaly. this seems to be a trend. you need about 100,000 to 125,000 a month just to keep up with the growing population. so when you're talking about 200,000, you're netting about 80,000 a month. net 80,000 a month, in order to get back to where we were prerecession time, that about seven years. so that's the bad news. in want to put it perspective, we are at levels right now that deviate from levels pretty much the same as we've had throughout the whole recession. look at the proportion of the population that's working,
4:16 pm
about 58 1/2%. for thehere it's been last lee years. >> you know, ed, do we want to prerecession levels in the sense that, yes, the unemployment rate, i understand but we were living in such a bubble at the time. and there was so much frost in way of what was happening in the housing and financial markets. do we even want to be talking that?going back to say going back to prerecession levels, i'm building in some changes that are going to occur in the anyway. for example, one of the most important changes that you've discussed in the past is the demographics. we know that the population is retiring. we've got the baby boomers moving out of the labor force. you'd have to take that into account. the other thing that you that if you looked at the 2007 period when we had rate ismployment, that probably too low in the sense that that's not sustainable over a long period of time. not talking about get back to those kinds of numbers. i'm talking about 5% to 5.5%
4:17 pm
unemployment. when i say getting back to -- i'm sorry, go ahead. hear you. so you want to get back to relatively low unemployment we all.s do >> right. >> what do think the fed's role will be in all of that? there's so much talk of potentially the taper happening sooner as a result of positive economic news we've seen. is the fed going to be able to get to a 5%onomy unemployment rate? the'm less concerned about taper than some others are. i think the effect of at thistive easing point is probably pretty limited. so we're moving that from the economy -- removing that from the economy will not have a major detrimental effect. did a great deal of good in 2008 during the crisis period. and i think it was quite effective. but if we look at the effect of the fed on economic activity minimal., i think it's and i think removing that stimulus will probably have a
4:18 pm
the small effect on economy. we need to get back -- i'm sorry, go ahead. more question one for you. we're somewhat short on time. quote,ently compared, sub standard healthcare policies to driving a ford focus. said they both get the job done. explain this metaphor. that?o you mean by >> well, what i was saying was i low-priced car when i was at the white house. that's all i needed. it served me very well. and if you deemed that car to be substandard, you'd be verynating a lot of qualified vehicles from the road. now, the question is when you talk about healthcare, which want to disqualify? so when the president said that he wanted to make sure that we substandard healthcare plans, in fact, what he was doing was probably going in the wrong direction. mostlans that are effective for the economy are those that insure catastrophic , ensure the kinds of things that people can't cover and need insurance for.
4:19 pm
be bare boness to plans. but they're very efficient. they tend to keep the cost of becausere down individuals then bear the cost of their own healthcare. go and have a plan that has lots and lots of frills and overs everything, people use that. one statistic -- i know you're out of time. statistic. if you look at switzerland and compare it to the united states, we have pretty much equivalent quality.e in terms of exitser land pays about 2 -- about 2/3 ofpays what we pay. the reason is the co-pay is 30%. statespay in the united is 12%. the swiss use their healthcare more effectively. those are not the plans that we business.t out of >> ok. we're going to lever it there. lazear.u so much, ed >> thanks for having me on. >> now, a large part of obama p.r. problems that has stemmed from the website. to debug thets exchange, the poll reveals americans aren't buying it.
4:20 pm
us rightrett joins here. congressman, welcome. >> good to be with you. the numbers byn you. 52% of americans that were polled are in favor of scaling or repealing the healthcare law. than thepoints worse 50% back in october. what do you think is holding the here?ent back what's really going on in terms -- question.a good >> in terms of the sentiment that's so negative right now. expect that question. that's a good question. what's holding him back? i guess it's an idea logically agenda by the president. you're right, the majority of the americans don't trust the administration. the majority of the americans don't believe what the administration is saying. ofyou say, the majority americans want the affordable healthcare act delayed or put with. done away >> though, actually, in fairness, representative, it's not a majority. actually only 51%, 52%.
4:21 pm
3% margin of error, roughly half of the country. >> half of the country. even the president agrees with them to a large extent why? because he has unilaterally, as you know, delayed significant portions of it. employers mandate. and you heard about the fact that they knew this wasn't going to work, back in august of this year. that just came out today. pushings. provision back as far as the reenrollment for 2015. even the president and the white theiradmit now through executive action that they should be putting these things off. they still insist on the rest of us. i'm a member of congress. my healthcare through the exchange. i can't get on the exchange. it doesn't work for me. he's forcing us to go forward it anyway. >> what's the solution? >> well, i think in the to doterm solution is just what i would say the majority or maybe half who want put it off for a period of time. >> but it's not completely
4:22 pm
rebuilding it. it. just postponing >> i believe the true solution to replacelem is what the obama administration has here. a plan wheres of americans will be on government welfare. having will qualify for somebody else pay for all or part of their health insurance. unsustainable model for this country. as your previous guest was most americansw, had insurance policies like what buying, buying what they needed. and when you add -- i was saying.what they were when you add the bells and whistles, those really aren't more -- insurance means to cover you for something that you don't expect to have happen to you and then to pay for it. bellsen you pay for the and whistles, you're what becomes prepaid health coverage which is no longer insurance. an unsustainable model.
4:23 pm
>> how is it unsustainable? if you have enough people in the pool, enough people sign up -- that's a big if. >> right. assuming they can. assuming they want to. >> obviously a problem. they all sign up, why shouldn't they be able to work? you have enough healthy people your pool. it should be sustainable. >> two roads to go on. one the point i made before, you 61%, 2/3 of america being subsidized by somebody your neighbor pay four yours. you're talking about the large numbers of insurance. works if everybody is in. and studies are showing -- the polls are showing right now the you need, young people, to go into the pools are not .oing into it it's not going to be sustainable. it's what you call a death spiral in the plans. need it onlyle who the people who have bad conditions are going to go into it. problem.e have a >> we and we've been saying that for years. >> thank you very much. it.ppreciate
4:24 pm
4:25 pm
4:26 pm
4:27 pm
4:28 pm
4:29 pm
4:30 pm
>> this is "street smart" on bloomberg television, on your and from bubble, to bust, to boom, this week on "street smart" we have been talking about the and the ugly in stocks, real estate, i.p.o.'s, even that weird crypto currency thing called bitcoin. scary stuff. right? guru brings us a few e.t.f.'s that are looking, shall own.y, frothy on their >> frothy is probably an understatement for some of these. the best going to make of list as stories come out. but be warned, these could be year. next one of those is tan, the solar energy. up 140% year-to-date.
4:31 pm
and beating all e.t.f.'s all leverage the e.t.f.'s. >> and looks like it's starting to roll over. gone belowlly it's its 50-day moving average. not a good sign. but there's 25 stocks in here. of them are up over 100% year-to-date. i don't think i've ever seen that. have to understand solar energy has been a loser its whole life. for subsidies, it wouldn't exist. what else? >> social media e.t.f. i like it. but it's up 54% year-to-date. this one is more on the valuation side, high valuations. twitter, facebook. it -- bloom is off the rose. but like it long term. it has no overlap in the tech x.l.k. that's why i like it. it gives you the exposure. goes,ardless of where it it's good to get the exposure. and the i.p.o. e.t.f., first trust i.p.o. you had a guest yesterday talking about how they've returned about double this year than last year. lookinghis one is frothy. 40% year-to-date. about 80% in the past two years.
4:32 pm
i do like this e.t.f. it's a catch and release. it catches them after three after foureases years. >> that's catchy. no pun intended. i like that. interesting. >> i.p.o. is a good e.t.f. but be careful. >> we love asking you every friday. ticker of the week? >> this week, angel, angl, the graphic. it's the market investigator's bond. angel high yield it tracks bonds that have been downgraded from investment grade to high yield. what's interesting about this one, it's one of three e.t.f.'s over 6% andned yielding over 6%, in the bond space. the only catch, that has a of about five years. so this is not going to be taper friendly. but if you are looking for that yielding more than junk. overlooked. >> what's this one? >> about 6.5%. over junk. its total return is higher than
4:33 pm
junk. interesting overlook. a lot of people don't catch them .n that middle space >> our very own e.t.f. analysts. thanks as always. >> thank you for having me. leaders mourning the death of south africa president nelson mandela spans the globe. spoke to one of those leaders. here's the former secretary of madeline albright. >> you pay tribute like many people to the premiere, global statesman over the last half century. mandela. you as i had you -- you said you treasure your memory of the meetings. what's the most memorable? >> his modesty. i was ambassador at the united nations. of walked up to me and said, hello, i'm nelson mandela. like you wouldn't know. when he spoke at the general assembly session, what i found so interesting, he was an actor. he would walk up slowly to that podium, in that big room. glasses.e out his he'd clean them. then he would put them on.
4:34 pm
a great speak with cadence. and i also visited him in amazing. which was so as a human being, he was stunning. and then when you knew the the man who had spent so much time in prison and for me the most important thing about him was his capability of forgiveness. will. >> no bitterness. bitterness. >> you also said that his words will survive. yet when you look around the world today, whether it's asia, africanle east or the continent, it seems to me anti-mandelay the forces are dominant. racial, religious strife and the like. no mandelas today? >> i think it's important that actually use his passing as a way to kind of teach that lesson. think it's so easy to develop that animosity and to keep and then polarization. so i do hope that we kind of use
4:35 pm
this as a teaching moment, he actually uses it as a teaching moment. i think partially what has that we are so divided by local interests is.ever one a real sense of the many ways hasin had an opposite effect of making people identify more with their own group because they feel so lost within a globalized world. then they're proud -- their pride in their own identity. but when it curdles into hatred next people, then that develops this kind of poiseious poisonous -- atmosphere that mandela did not put up with. >> let me switch to one of the poisonous places in the planet, north korea. there were reports this week of strife there. apparently sacked his uncle and mentor. what does that mean? do you worry that they may, in tryr to distract attention, to get mill contrarily --
4:36 pm
militarily? >> i don't know how much has been confirmed, but he is that hetrying to prove is in charge. the uncle was kind of put in as a reege cent in order to watch over him. there also was a military part ofnt that was that. i think that we don't know what the effect of it is. a tendency tove kind of do something to distract. hand, it could be seen because some of these people were known to be wants tors, that he move in a different direction. and the bottom line is we do not know. few -- one of a the few diplomats to spend time there. he was not leader at that time. but he's been there for two years. do we know anything more about him now? do we know any way he's different than his father, grandfather? >> i think we don't know a lot. people were supposing because he to school briefly in switzerland that he had a different idea about things. wife -- wife -- has a who dresses well. that he might have more western
4:37 pm
ideas. havenk very few people actually met with him. and i think that we do not have, people that don't have intelligence material, an awful lot of information on him. al, is thatd thing, we didn't know that much about his father. i know when i was going over the hard parts was trying to get information on him. to theely i spoke president of south korea who had just met with him who was able tell me that the -- kim jong il was not crazy. but that was partially what people were saying in the intelligence. and that he was somebody that with, whonegotiate was smart and who knew the details of a lot of the stuff.ogical >> al hunt hosts "political" and joins us right we heard her say she was worried about north korea. what else did she tell you she be worried about on the global front right now? >> she's actually quite optimistic about the eye rain nuclear -- ey iranian nuclear deal but worried about
4:38 pm
thatading the israelis, it's in their interest. she's worried about a final deal. but i think she's cautiously optimistic. north korea, i think secretary albright may know more than americany other top diplomat because she's actually been there, was three or four there.go she was and what she says is so remarkable, we don't know. know anything about this regime which has nuclear weapons. and we take -- there's some hope that maybe these changes are for the good, for change. but we're not confident of that. >> we only have about 30 seconds left. madam albright commented we're so divided by local interests. as congress comes together to to figure out the sequestration 2.0, do think do thinkthere again or they find common ground? >> she said the world ought to as ato nelson mandela model for reconciliation. the united states congress would to take thated council also.
4:39 pm
could overcomela what he went through and was able to reconcile those differences there, why they can't agree on a so little budget deal i have no earthly idea. >> well put, al hunt. thank you very, very much. i do want to point out, you can interview with madeline albright on "political capital with al hunt" tonight on tv 9:00 p.m. eastern and throughout the weekend. thanks, al. big bucksup, making by giving back. we're going to be talking with lauren bush lauren and michelle obama's chief of staff.
4:40 pm
4:41 pm
4:42 pm
4:43 pm
>> this week bloomberg released a study of the 50 u.s. companies doing the most to make the world little bit better. it's good for people and based on the data it's actually good for business as well. oversaw the project as the executive director of points of light. us, lauren bush lauren a pioneer in humanitarian businesses. help our viewers understand how company that made your list are both going about their business and actually making the world a little bit better. what are they doing? >> great. so it's a survey that recognizes community-minded companies in america on the s&p 500 list. what we're looking at is how engaging ine community. that looks at things like dollars, employee volunteers, how are companies using the skills and talents of and localle for good
4:44 pm
communities. their advocacy on behalf of issues. arehese things combined looking at the holistic picture of how companies are investing in communities. point number three, measuring the impact. how do you quantify this so that say, oh, this is worth our doing? >> right. it's a great question. we work with companies in the survey, it's about social value and business value. what the community -- what the company's doing having social value in the communities? having impact? is it moving the needle on issues? but really for businesses to what's theking at business value? what's the bottom line benefit? and they look at things like recruitment, retention, increase in brand, reputational value, sales value. things together really create a sustainable program for a company. isand lauren bush lauren here with us as well. she started feed which is an example of a company that's doing exactly this. of why is it important for you from a business standpoint to be back?
4:45 pm
>> i really started feed with the sole motivation of creating donations, for awareness raising for the cause of hunger. so i went about it in a a lot of way where these big company that are on this list were just so wonderful, have made it part of to give but i would say it's not to the core of their business. for feed and for like-minded that aresinesses merging now, it is the core of our business to give back. like tomsr words, shoes where you buy shoes and pair.ives away a >> exactly. so feed and toms started around the same time. wonderful. it makes me so hopeful that entrepreneurs are starting are vehicles to make a big difference, make a big impact. >> we were talking during the break. something in for consumers as well. they like knowing that their betters going to serve a purpose. how does it work for some of these bigger companies, jackie? do they basically make this work ultimately for their bottom line? >> yeah. great question.
4:46 pm
b-to-b andompanies, b-to-c are different. some of the most successful stories that we tell are on use their core competencies for good. i like to highlight a company fedex.s or you think about the work and the role that they play during times of disaster, for instance. they know? they know lo logistics, moving things. they're a great partner to use what they know for good in a community. they use their own employees to products and services, water, whatever it might be for good in communities. that's an example but one that speaks to their strengths as a company. names we knowe made your list. stanley,ackard, morgan hershey, even raytheon. starbucks,, though, target, companies that we think of as good in the community and make the list. why not? >> yeah. and let's be careful to say they didn't make the list. opt-in survey. so it's for s&p 500 companies.
4:47 pm
variety of reasons why companies aren't on this. maybe they chose not to take it. policiescompanies have not to take surveys. and since it's not based on public data yet, we don't have them on the list. and it's not to say that they don't have great programs. but our hope is that they'll it in the future. >> jackie norris and lauren bush lauren. thank you for joining us. you.ank >> thank you. >> all right. coming up, mcdonald's is now serving up cash. explain today's weird wall street.
4:48 pm
4:49 pm
4:50 pm
>> time for "weird wall street" where bizarre is business as usual. a company in tennessee got an unexpected win fall during their trip to mcdonald's. hot breakfast. instead they got a bag full of cold, hard cash. news channel 5 reports thousands of dollars in cash packaged for a bank deposit accidentally
4:51 pm
in a to go bag. the employee mistook it for the couple's breakfast order. quickly realized the mistake and managed to follow the couple to their home. returned.was no drama. you never know. >> did they keep any? >> you never know what you're to get in a mcdonald's to go bag. >> apparently not. that never happens to me. you what. i've got another one for you. ron burgundy has the folks at confused -- little confused. the "los angeles times" is reporting that the chain is calling it the new memoir of san diego's fictional tv anchorman, quote, non-fiction. it's supposedly true. right? this is coming as costco caused for labelingonth the bible as fiction, meaning that never happened. book,islabeling the good that's a little embarrassing. >> is it mislabeling the good book? should the bible be labeled non-fiction? wondering. where would you put the bible? >> it's a pretty big
4:52 pm >> let's just say -- i'm going to make you, trish, manager of the costco. your choices are fiction and non-fiction. where are you going to put the bible? >> i don't know. but this ron burgundy thing, he got put into non-fiction rather than fiction. funny.pretty somebody thought it was -- >> ron burgundy is a big deal. >> he is. do that really well. >> thank you. >> if you want to know how and family friends are, well, you can play a simple board game to find out. it's called the really nasty banker's game. never mind honesty, integrity. the game let's players run the economy, ruin the economy, fix the stock market, squander away billions, and even get a bailout. and no doubt they will never, jail.o to [laughter] >> that's great. >> i can't believe people -- that.ove >> funneled that much creativity into this project. >> have a great weekend, everyone. great christmas present for someone for sure. see you monday.
4:53 pm
4:54 pm
4:55 pm
>> it is approaching 56 past the hour that means bloomberg markets." is "on the i'm julie hyman. legalities get you caught up on where we ended the session today. for a change. after five down days we recouped fromt all of the losses that. so the s&p up about 1.1%. 1.3%.w gaining and the nasdaq up about 29 3/4 of 1%. interestingar note, reaction in the treasury market. we saw yields move lower by the the trading session there. a little bit unusual.
4:56 pm
you would think they would be economicher with this data. for more on the market's reaction to the jobs report and what happens next, i want to in jason, the president of ledo aisle advisors. jason, first i want to talk about this morning. pimco's c.e.o. called this a surprisingly good jobs report, withed thinks will be by -- welcomed by everyone from the fed to main street. need totold us what we look for next to prove the economy is really on the road to recovery. take a listen to what he had to say. hadook for whether c.e.o.'s the confidence of using cash not to pay dividends and do share buybacks but whether they had the confidence to translate that in investment in factories, plant, and hiring. if they do, then you can higher growththe eastbound lib rum. so the key issue is business investment at this point. >> what do you think? what is sort of the next sign? this is just one jobs report. right? what are kind of the next signs you're going to be looking for
4:57 pm
to make sure the economy is, track? on >> well, i think first of all we need to see continued jobs growth. wherean't be a one-off january's numbers plus 30,000. that's going to be a big problem. for a lot of people. street and main street. so we need to see continued 200,000-dollar, 250,000-dollar jobs per month. two, he makes a wonderful insight. to kind of coin another phrase thinkn bloomberg tv, i these shared buybacks are another form of corporate q.e. recycle this easy money into shares to try to boost prices. i think he makes a great point in that, listen, it's one thing to do share buy backs but another to put money to work externally to try to grow profits. a great point. i agree. >> i want to take a step back for a second and look at what we saw in today's session. i mentioned, unusual response in the treasury market where you didn't really see those yields moving higher. why not?
4:58 pm
what did people take away from today in terms of the readthrough for the fed and for rates? >> right. real there's a couple quick explanations that i can give. number one, it was kind of your classic buy the rumor, sell the news idea where going into the jobs number all week, the bonds going down, down, down. then all of a sudden you don't blowou ly a big blowout $200,000 number. you get a dean number. so now the short's covered. now they're waiting for the fed which is really only in 10 days to provide the next clue. didn't really super excite the bond barers. added confirmation that maybe we could see a taper pretty soon. just likel lick -- quickly, strategy? >> i like being bearish bonds. long-term even the next couple of months i think the bond market is going down. as i said before i think the stock market is still in the bull market. i like to ride the bull. >> all right. long stocks. sticking with it jason rotman,
4:59 pm
thank you very much. ♪
5:00 pm
>> this is "taking stock," for friday, december 6, 2013. i am pimm fox. we are focusing on trail blazers, taking different approaches to change their industry and the world. nelson mandela certainly changing the world, the legacy he left the hide. plus, ted williams, known as " the kid" and "the splendid splinter" one of baseball's all-time greats. and the


disc Borrow a DVD of this show
info Stream Only

Uploaded by TV Archive on